Thursday, July 12, 2012
The malaise continues as the Dow fell 31 points on what passes now for average volume. The advance/declines were negative. I didn't get any OEX calls today but I am still interested in that trade near term. The timing has got to be good for this idea to work. I will consider buying them tomorrow and dumping them on Monday or Tuesday. The short term technicals are oversold. No real news today of any consequence and we were off over 100 points early on. I'm still expecting at least a short covering rally soon. GE was down 1/4 on average volume. We've reached the 50 day moving average on the daily charts. Oversold short term here as well. Earnings out in a week. No trades for me here. Gold was lower again today on the stronger US dollar. The gold futures closed down $10, were down over $20 at one point of the session and made a comeback in the after hours market. The XAU fell 2/3 but was much lower than that intraday. ABX, GG and NEM all had fractional losses after all being lower by over a buck early. ABX and NEM have potential doji morning stars on their daily candlestick charts. My ABX August calls are firmly in the red. That trade is now in a cut the loss, take the loss mode. My next attempt here will probably be the October calls. Mentally I'm feeling OK. If we get some weakness in the morning for the stock indexes I'll probably try the July OEX calls. I've been looking at this trade for a couple of days and the longer there isn't any upside the more likely it is for some to occur. In theory anyway. The market could just keep heading down as well. But I don't think that is going to happen. The ABX trade is yet another loser, it's just a matter of how much. I still might wait until the earnings report though. Not much else for a Thursday afternoon in the summer. We'll close out the trading week tomorrow.
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